How do sustainable supply chain practices influence customer intention for herbal products?

Abstract

Sustainable Supply Chain Management (SSCM) is a prominent corporate response to environmental degradation and industrial emissions, yet most empirical work examines only its environmental dimension. How the three pillars of the Triple Bottom Line (TBL), namely the economic, social, and environmental dimensions, jointly shape consumer behaviour in manufacturing and agro-industry settings remains poorly understood. This study tests the influence of TBL-based SSCM practices on customer intention toward herbal products in Indonesia. Questionnaire data from 250 consumers of a single herbal agro-industry firm were analysed using SEM-PLS in SmartPLS 4.0. All three pillars positively influence customer intention, explaining 57.4 per cent of its variance. The social pillar had the strongest effect (β = 0.321, p = 0.003), ahead of the economic (β = 0.299, p = 0.003) and environmental pillars (β = 0.222, p = 0.049), challenging the assumption that environmental practices drive consumer engagement most. The environmental effect is only marginally significant and is interpreted cautiously. Because the sample is purposive and drawn from one firm, the findings are indicative rather than generalisable. They nonetheless suggest that TBL-based SSCM frameworks extend beyond sharing-economy contexts and identify the social dimension as an underutilised lever in sustainability strategies aimed at consumers. i